The London Barometer April 2010

Saturday, May 01, 2010 by Douglas And Gordon

Sales: April 2010
"Uncertainty is the property owners worst enemy. Many people will hesitate to sell or buy during this period, and the pound will stay weak meaning not much will change for property over the next few months. Cash rich foreign buyers will continue to support a very thin market, especially in London where they are pumping up prices, and everyone else will continue to sit on their hands until a more certain future is determined..

A government without Labour will mean the scrapping of HIP's and the return of 'speculative seller's who have been absent from the market for far too long. When families are more strapped for cash than ever before, the last thing they want to do is pay for a HIP. This, coupled with renewed confidence, will bring more property to the market which may dampen prices in the short term but will bring more stability in the long run."

 

Lettings: April 2010
"Supply of rental property in London has broken all time low levels consistently every month since January. Accidental landlords have disappeared from the market, tenants are not moving and buy-to-let landlords are waiting in the wings until the market stabilizes. We have five potential tenants for every one property on the market. Less than six months ago tenants were in a strong position to negotiate down on rent renewals, but in April the majority of renewals increased by an average of 5%. In Kensington and Chelsea it`s not unusual to see increases of up to 15%."

"Rents in London have always been dictated by supply and demand - low supply means prices go up. We are already seeing a new wave of accidental landlord who were trying to sell being encouraged back into the lettings market; and seasoned landlords are also seeing the window of opportunity to secure a tenant at a higher rent now than six months ago."